Wayzata's tax levy will increase to $3,354,807 in 2008, a 6.79-percent increase over 2007's total of $3,141,540.

The Wayzata City Council voted unanimously Dec. 18 to approve the increase, as well as a 7.7-percent increase to the 2008 general-fund budget.

Included in the increase is $3,125,500 for the city's general fund, an increase of 7.2 percent ($2,915,150) over 2007. The city's debt service on the Big Woods Bonds will also increase slightly from $226,500 in 2007 to $229,307 - an increase of 1.2 percent.

City Manager Al Orsen said about three-fourths of the increase is due to wage and benefit increases for city staff. Typically, he said, the city gives employees a 3-percent annual increase to cover cost-of-living increases, but that some department heads received significantly more this year because the salaries were falling behind and were increased to "adjust to outside markets."

Additionally, he said, employee healthcare costs are increasing significantly.

The budget increases are not limited to employee compensation, however.

Orsen said the city will spend $10,000 to improve the city's communications functions; has earmarked money to replace some of its technology - including computers and servers; and has invested about $10,000 for a school liaison officer to begin working at Wayzata West Middle School, beginning in the fall of 2008.

The largest increase, Orsen said, will be to continue with the city's Capital Improvement Plan, including work on Ferndale Road that will likely cost more than $1 million. The work on Ferndale will begin at Lake Street, move to South Ferndale Road, and then over to the Orono-Wayzata border.

Typically, Orsen said, the city has tried to complete CIP projects without bonding, adding that it doesn't seem feasible to do that this year.

"What's really pinching us - and everyone - is the price of oil. ... The price of asphalt is up, the price of trucking and shipping materials is up."

The 2008 general-fund budget has been set at $4,390,600 - up 7.7 percent from $4,075,550 in 2007.

Orsen said the largest portion of the increase is for updating equipment for the Wayzata Fire Department. Beyond that, he added, the increases are "primarily inflationary."

The city has budgeted for $1,077,450 in general government expenses in 2008, up from $1,029,100 in 2007. Its public-safety expenditures will increase to $1,744,450, up from $1,578,200; public-works expenses will increase to $747,450, up from $711,900; and parks and recreation expenses will increase to $653,300, up from $626,800.

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